Indian Unicorn Companies cut Appraisal: Amidst the possibility of global recession, many Indian Unicorn Startup companies have given a big blow to the employees. year 2023 With the beginning of the startup companies are struggling with the lack of funding (Startup Funding Winter). In such a situation, these companies have taken a big decision to cut down their expenses. More than 100 unicorn companies have made huge cuts in their Appraisal Budget 2023 (Startup Companies Appraisals Budget). In such a situation, after retrenchment, the employees will also have to face reduction in appraisal.
10 to 3 Unicorn kept zero appraisal budget
According to the report published in Moneycontrol, this year almost 3 out of 10 unicorns have kept minimum to zero budget for salary hike. On the other hand, if we talk about the year 2022, the appraisal budget was 12.1 percent of the total salary, which has now come down to 7.7 percent. In such a situation, companies have made huge cuts in the budget of salary hike of their employees as compared to last year. Most of the companies have either delayed their appraisal by 2 to 3 months or have decided not to give it at all.
Big companies are also cutting salary increment
The thing to note is that this deduction is not limited to startup companies only. Five leading Indian companies have also decided to give minimum to zero appraisal. After this decision, the average salary growth rate of employees has come down to only 8.2 per cent in the year 2022 as against 12.4 per cent. Startup companies had done excessive hiring during the Corona period. After this, due to the sound of global recession, many investors pulled back from investing in startups. Due to this, there has been a huge decline in startup funding. According to media reports, in the year 2022, many startup companies have shown the way out to more than 25,000 employees across the country.
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